Petrovietnam, partners to delay construction of new Nghi Son refinery

The $9 billion Nghi Son complex, to be located 180 km south of Hanoi, will have a refining capacity of 200,000 bpd. It will process Kuwaiti crude oil supplied exclusively by Kuwait Petroleum International.

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By VU TRONG KHANH

HANOI -- Petrovietnam, and its partners from Japan and
Kuwait, will start the construction of Vietnam's second oil
refinery in September or October
this year, instead of this month as planned, local media
said.

The $9 billion Nghi Son complex, to be located 180 km south
of Hanoi, will have a refining capacity of 200,000 bpd. It
will process Kuwaiti crude oil supplied exclusively by Kuwait
Petroleum International.

"According to our previous plan, construction would begin in July,
but it will be delayed until September or October,"
Petrovietnam Chairman Phung Dinh Thuc was quoted as saying in
online news provider Dan Viet's report.

Mr. Thuc said all the partners have arranged sufficient
funds for the project, but didn't provide a clear
reason for the delay, according to the report.

Petrovietnam executives weren't immediately available for
comments.

Idemitsu Kosan and Kuwait Petroleum each own a 35.1% stake
in the project, while Petrovietnam and
Mitsui Chemicals own 25.1% and 4.7%, respectively.

Petrovietnam will buy all oil products from Nghi Son at
Asian market prices, as its output is primarily intended to
meet the needs of Vietnam's domestic market. It is also allowed
to export any excess production to avoid reducing the refinery's operating rate.

Dow Jones Newswires

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